The DJIA ended down 366 points while Nasdaq was down 113, the S&P 500 fell 35 points and the 10-year treasury yield was up .10 to 4.04%. Was there anyone who really did not think the 10-year was going to avoid going over 4%? The good news in the markets is the DJIA was down over 500 points this morning and recovered somewhat. The bad news is that interest rates once again are what is causing anxiety from stock investors and every time they think they get comfortable and the end of the rise is in sight, something like this week happens. Lodging stocks were lower. With SOND down below $0.50 a share, do we still need to report when it goes down or up 9%? It was down -9% today. SLNA was down -5%.
STR reported US lodging data for the week ended July 1. US hotel RevPAR was up 5.7% year over year, led by a 4.1% rise in occupancy.
Apple Hospitality REIT, Inc. announced the acquisition of the Courtyard by Marriott Cleveland University Circle, in Cleveland, OH, for $31 million. The 154-room property recently underwent a complete renovation of its guest rooms and interior public spaces, including new signage, an elevated bar experience, enhance meeting facilities, an expanded fitness center and the addition of one guestroom.
The 186-key Sheraton Bucks County Langhorne hotel is being put up for auction with a starting bid of $3.9 million. The online auction for the Langhorne, Pennsylvania, hotel will be held on August 7-9 on RI Marketplace. JLL’s Hotels & Hospitality Group is brokering the sale for the owner, Ashford Hospitality Trust. The 15-story Sheraton Bucks County Langhorne features a restaurant, bar, heated indoor pool, fitness center and more than 13,000 square feet of meeting and event space across 11 rooms.
A 120-room hotel, formerly a Holiday Inn, at 425 Meeting Street in Charleston, South Carolina, is now The Limited, but only for a limited time. Once a $25 million renovation is completed next year, the property will take on a new name as Live Oak as it becomes South Carolina’s first hotel in Marriott’s Tribute Portfolio. Owned by Tara Investments, Live Oak renovations are scheduled to begin next March and while the exterior of the hotel won’t need much renovation beyond new signage, every space will be stripped down and redesigned. A new restaurant concept will replace the existing one, and the second-floor pool area will be converted into a deck lounge with a U-shaped bar.
The five-story Hampton Inn & Suites in Manistee, Michigan, is nearing completion and taking reservations for July 17 and beyond. The hotel will feature 102 rooms, a beach bar with firepits and mixed seating, a restaurant, fitness center, a pool and an indoor-outdoor hot tub.
The 3,506-room Resorts World in Las Vegas now has a private members’ club. The property houses three separate Hilton Hotels: a 1,774-room Hilton; a 1,496-room Conrad; and the boutique 236-room Crockfords Las Vegas, LXR Hotels & Resorts. Crockfords now has an additional amenity: a private club available to members and Crockfords hotel guests. According to Resorts World, membership in the exclusive club has been extended to approximately 65 individuals so far.
The Virgin Hotel, located in Dallas’ Design District, has changed ownership. The 268-room hotel was developed by a partnership led by Dunhill Partner’s chairman Bill Hutchinson. The hotel’s ownership has quietly changed with the lead investor buying out Hutchinson and recapitalizing the property. HN Capital Partners now controls the property and accounting to Hutchinson, “HN Capital will inject additional equity into the hotel in order to service the debt and avoid a foreclosure, but would only do so if they had full ownership and control of the hotel.” The 16-story Virgin Hotel includes penthouse suites, several restaurants and bars and a rooftop pool.
Crestline Hotels & Resorts, LLC has been selected to manage the Hyatt Place Keystone in Colorado. The hotel is located in the heart of Arapahoe Basin adjacent to Keystone Resort. The 103-room Hyatt Place Keystone is owned by an affiliate of Realty Capital Partners, LLC, and features 2,187 square feet of event space across three conference room, 2,252 square feet of outdoor patio space, a restaurant, Espresso Bar, outdoor hot tubs, and a gym.
Kennedy Wilson and Rosewood Hotels & Resorts announced the opening of Kona Village, A Rosewood Resort located in Kailua-Kona, Hawaii. The property is an inspired re-imagination of the original Kona Village Resort and features 150 guest hale, traditional Hawaiian beach bungalows; an array of restaurants and bars; Asaya Spa at Kona Village; and recreational facilities including tennis, paddle, and bocce ball courts, as well as a fitness center.
Global Holdings announced the acquisition of the Mondrian Park Avenue, a 190-key hotel in Manhattan’s NoMad neighborhood. Global Holdings previously held a senior mortgage loan on the property and completed the acquisition as part of a prior agreement with Moin Development.
Meriwether Companies acquired Morgan Run Club & Resort in Rancho Sante Fe, California. Situated across 200 acres, Morgan Run comprises 76 hotels rooms, 17,000 square feet of private event space, a 27-hole golf course, driving range, short game practice facilities, 10 tennis hard courts, four pickleball courts, heated outdoor pool and a fitness facility. Meriwether Companies will invest more than $25 million in a renovation to enhance and re-imagine the property, including its racquet sports, golf, dining and hotel components. The construction will occur in phases, allowing the resort to remain open and providing a seamless transition throughout the refresh. Estimated completion for the enhancements is slated for late 2025.
Major investments into renovations at Temple Gardens Hotel & Spa, located in Moose Jaw, SK, Canada, are now underway following the property’s acquisition by Peepeekisis Cree Nation. PCN-owned Sparrow Hawk Developments fully acquired the hotel, the mineral spa, the walkway connecting the building to Casino Moose Jaw, part of the Casino building and three associated parking lots. The ambitious multi-million dollar investment and renovation project at Temple Gardens will see all 181 rooms, along with hallways, change rooms, and other high-traffic areas of the building re-imagined into a contemporary style. To minimize disruptions for hotel and spa guests, renovations with be carried out in phases. The current plan is to complete all renovations by the end of 2025.
A $30 million-plus resort that is proposed to be built in the Adventure District of Oklahoma City, Oklahoma, moved forward on Wednesday. The project includes 200 RV slips, 45 cabins, four train cars, six treehouses, 13,000 square feet of retail space, a welcome center, an event center, restaurant and outdoor recreation facilities. If all goes to plan, the developer projects a 2025 opening date.
A 32-room boutique hotel is planned for the Walker’s Point neighborhood of Milwaukee, Wisconsin. SED Group, also known as StandEatDrink LLC, plans to seek zoning approval from the Common Council this fall. The project will take 12 to 18 months to construct. Known as The High Life, the five-story building will feature a restaurant and bar along with parking on its ground floor, with hotel rooms on the upper floors. The High Life would be the second full-service hotel in Walker’s Point.
Service Properties Trust entered into a new $650 million secured revolving credit facility. The maturity date of the new facility in June 29, 2027, and includes two six-month extensions as the borrower’s option. The new facility is secured by 69 properties and replaces SVC’s previous $800 million revolving credit facility which had a maturity date of July 15, 2023.
Personnel Moves
Marriott Vacations Worldwide Corporation announced Raman Bukkapatnam will join the Company as Chief Information Officer, effective July 10, 2023. In his role, Bukkapatnam will be responsible for leading the enterprise’s global technology strategy, transformation, and modernization. Prior to joining the Company, Bukkapatnam served as Vice President, Global Technology at Nike, Inc.
H World, the shareholder of Deutsche Hospitality, appointed Oliver Bonke, Chief Executive Officer of Deutsche Hospitality, as CEO of H World International. In this new role, Bonke will focus on the company’s growth and commercial success outside its core market China. Bonke carries these responsibilities in addition to driving further expansion of Deutsche Hospitality beyond its already strong footing in Europe, Africa and the Middle East. Further, Choon Wah Wong is appointed as Managing Director of Steigenberger Hotels GmbH/Deutsche Hospitality and SVP Finance of H World International. Wong joins the company from Shangri-La International Pte Ltd where he most recently served as Co-Head for the Middle East, Europe, India & America region. Wong is succeeding Dr. Ulrich Johannwille, Deutsche Hospitality’s former CFO and Managing Director, who decided to leave the company at the end of March.
Melia International Hotels appointed Mariano Perez de Caceres as the new Chief Legal & Compliance Officer. In his new position, Mariano assumes overall responsibility for the areas of legal, corporate governance, compliance and risk control, and finally, internal audit of the group. Until now, Perez de Caceres was Legal Vice President of the Spanish Company.
Europe Highlights
Arrow Global completed its acquisition of several major assets of Dom Pedro Hotels & Golf Collection, including three hotels: Dom Pedro Portobelo, Dom Pedro Marina, and Dom Pedro Villamor, and five golf courses. Every asset is in Portugal’s Algarve region. According to Madeira Island News, the deal is estimated at approximately 250 million Euros.
Event Hotels announced the opening of DoubleTree by Hilton Berlin Ku’damm, marking the first opening under Hilton’s DoubleTree by Hilton brand in Berlin and the third in Germany. The hotel boasts 420 guestrooms and suites, a restaurant, fitness area and 8,600 square feet of meeting space across 11 meeting facilities.
